The Federation of Master Builders (FMB) Cymru is calling on political parties to prioritise reform of Wales’ housing delivery system ahead of the Senedd election on 7 May, highlighting the role of SME housebuilders in addressing supply shortages.
Access to housing remains a significant challenge across Wales, with Welsh Government estimates indicating a need for approximately 8,700 new homes annually. Over the past five years, delivery has averaged around 5,000 homes per year, contributing to a growing shortfall.
Around 75% of new homes are built by the private sector, with delivery increasingly concentrated among a small number of large developers. These firms typically focus on larger, higher-return sites, which can limit development on smaller, locally important plots.
SME housebuilders, which accounted for around 40% of new homes in the late 1980s, now deliver approximately 10%. FMB Cymru states that reversing this trend is key to increasing housing supply.
The organisation highlights planning system complexity, cost and risk as barriers to SME participation, noting that these factors can restrict market access to larger firms with greater financial resources.
Ifan Glyn, Director at FMB Cymru, said: “If we continue to rely on a small number of large firms to deliver the vast majority of our homes, we will never build at the scale and pace required to meet Wales’s housing need.”
Mark Roberts, Chair of the FMB West Wales branch, added: “Smaller sites that local builders would typically take on are becoming harder to access, and the planning process is too uncertain and costly to take the risk.”
FMB Cymru is calling for measures including higher housing targets, improved access to smaller development sites, adjustments to major development thresholds, and better access to pre-planning finance.
